A Shares Are Not Booming: The Market Has Long Been In Turmoil For Four Times.

As the major indexes were reported in June, the market in the first half of the year ended.

Looking back at the trend of A shares in the past half year, although the Shanghai stock index, which is most familiar with and concerned about, is not booming, it is still hovering around 3100 points. However, the market environment, market structure and investment logic have changed dramatically.

Judging from the first half of the market, as of last Friday's closing, Shanghai's 50 rose 11%, Shanghai and Shenzhen 300 rose 10%, Shanghai Composite Index and Shenzhen stock index rose 3%, medium and small board fell 2%, and gem fell 8%.

Generally speaking, in the first half of this year, the market structure of the A-share market was divided seriously. The main feature of the A share market was that the blue chips continued to rise, the stocks with high valuations were falling, the Shanghai Composite Index and the Shenzhen stock index were not booming.

On the one hand, the size of the overvalued company is not sustained by the two tier market, and the massive reduction has led to a huge downward pressure on the share price of these companies.

As the cost of holding shares is very low, under the background of soaring stock prices, high valuations and lucrative profits, the reduction power of large and small non shareholders is long and intense, and the pressure on stock prices is very obvious. This is also an important reason why I have repeatedly warned you to stay away from high valuation stocks.

On the other hand, the demand for quality blue chips is growing rapidly.

This demand is also long-term and strong, and will undoubtedly play an active role in stabilizing and improving the share price of blue chip companies.

The old funds are continuing to withdraw and new funds are coming in. These two forces will bring great impact to the market.

Due to the change of shareholder structure, the structural market in the first half of the year has become more and more intense.

Shanghai and Hong Kong have been opened for more than 2 years. Shenzhen and Hong Kong have been running for more than half a year. The interconnection and exchange of the two markets have had a significant impact on the market environment and stock price structure of A shares.

Inland

In the past, they were keen on themes and hyped up for investment, and foreign capital was mainly about value investing, advocating enterprise value and company performance.

With the integration of the two markets, especially after the abolition of the total amount of investment in Shenzhen Hong Kong Tong and Shanghai and Hong Kong through the past year, the northbound capital enthusiastically bought A shares blue chips, to a certain extent, a catalyst for the pformation of market investment style.

In June 21st, MSCI announced that it was included in China's A shares and will be formally implemented from June next year.

Although the entry of external funds will take some time, there has been internal capital allocation in advance because of this important positive factor.

From last week's situation, a number of index funds that have tracked the Shanghai Stock Exchange Index 50 have seen huge purchases of 1 billion 500 million funds. This situation means that more people agree that foreign capital entering the market will lead to the rising trend of blue chips.

What can be expected is that

Gradually increasing the A stake will be a long-term trend. The internationalization of China's stock market is also an inevitable trend. A shares blue chips may receive more attention in the future market.

Last week, many stock prices in the Hong Kong stock market fell sharply. This phenomenon is even more shocking than the collapse of a single stock in the previous period.

The collapse of the stock market shows that many funds and investors are beginning to be alert to the risk of subject stock and audit firms. This risk is beginning to show up in this collapse.

This incident also provided a great reference for our A shares.

How can a company really stand upright in the market, not in terms of capital, but in the quality of the company.

Any act of manipulating the market can not last forever. Ultimately, it depends on whether the company is genuine or not.

To sum up, as we have seen

Strong and overvalued stocks will become a long-term trend, and no longer should they focus on the trend of the past market.

The sooner you lay out, the sooner you will gain. The sooner you avoid risk, the sooner you get the chance.

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